LSI Industries (LYTS) Investor presentation summary

Strategic positioning and business model

• Vertically integrated provider of lighting, display, and branding solutions for diverse retail environments, with a focus on high-value verticals such as grocery, refueling/convenience, QSR, and commercial/industrial markets.

• Integrated solutions business model drives strong customer retention and repeat project cycles, supporting demand above the non-residential market.

• Fast Forward Strategy emphasizes sustained, profitable growth, high free cash flow, and accretive M&A.

• End-to-end platform offers design, manufacturing, installation, and service, enabling seamless multi-site execution and recurring customer relationships.

• Market-leading positions in core verticals, supported by long-term macro tailwinds and predictable replacement and refresh cycles.

Financial performance and growth

• Fiscal Q3 2026 net sales grew 14% year-over-year, with adjusted EBITDA up 34% and margin expansion of 150 basis points.

• Display Solutions segment led growth with 23% revenue increase and 70% adjusted EBITDA growth, driven by strong project activity in grocery and refueling/c-store markets.

• Lighting segment saw 2% sales growth, impacted by lengthened quote-to-order conversion periods but maintained above-market growth.

• Adjusted net income rose 52% year-over-year in Q3FY26, with improved operating leverage and cost discipline.

• Five-year sales CAGR of 13.4% (2020–2025), with revenue growing from $305.6M to $573.4M and adjusted EBITDA from $15.6M to $55.1M.

M&A and Royston acquisition

• Acquired Royston Group in March 2026 for $325M, funded by debt and equity; transaction is immediately accretive to margin and EPS.

• Royston expands presence in C-store, grocery, and refueling verticals, providing significant cross-selling opportunities and complementary solutions.

• Combined entity (pro-forma FY25) has $864.4M revenue, $95.3M adjusted EBITDA, and 2,899 employees across 23 manufacturing locations.

• Royston’s portfolio includes cabinetry, checkstands, shelving, signage, and refrigerated cases, with a focus on recurring remodel cycles and national/regional customers.

• Expected to deliver cost and revenue synergies through cross-selling, manufacturing optimization, and procurement leverage.